Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


MARKET CLOSE: NZ shares drop, led by Warehouse

MARKET CLOSE: NZ shares drop, paced by Warehouse, Hallenstein, Kathmandu

By Suze Metherell

Jan. 23 (BusinessDesk) - New Zealand shares fell as the market joined a region-wide decline, and was paced by retailers after the Warehouse Group joining Hallenstein Glassons in issuing a profit warning.

The NZX 50 Index fell 39.263 points, or about 0.8 percent to 4911.076. Within the Index 35 stocks fell, seven rose and eight were unchanged. Turnover was $101.7 million.

Across the Asian markets there was a downturn after Chinese data showed manufacturing was shrinking. Australia’s S&P/ASX 200 Index was down 1.2 percent in afternoon trading, while Hong Kong’s Heng Seng Index slipped 1.4 percent and Japan’s Nikkei 225 Index was down about 0.4 percent.

“The negative data out of China flowed on particularly through Australia,” said James Smalley, a director at Hamilton Hindin Greene. “We just seem to be following those trends at the moment.”

Budget retailer Warehouse Group led decliners after it warned its first half profits could fall as much as 13 percent. New Zealand’s largest listed retailer slid 4.5 percent to $3.54, its lowest price this year.

Among other retail stocks to fall, outdoor equipment chain Kathmandu Holdings dropped 4.4 percent to $3.35 and Hallenstein Glasson, which was punished last week after it issued a profit warning, fell 2.9 percent to $3.35.

Smalley said the decline among retailers was on light trading volumes, and that “most people want to give the companies the benefit of the doubt.”

Listed property entities declined as the talk of an interest rate hike “sooner rather than later,” diminishing the appeal of property stocks that typically return a steady cash dividend, Smalley said.

Goodman Property Trust fell 1 percent to 97 cents. Kiwi Income Property Trust dropped 0.9 percent to $1.10. DNZ Property Fund fell 0.3 percent to $1.53, and Argosy Property was unchanged at 93 cents.

SkyCity Entertainment Group slipped 1.8 percent to $3.82. Auckland International Airport slid 1.2 percent to $3.62. New Zealand’s biggest listed company Fletcher Building fell 0.3 percent to $9.13. Telecom was down 0.2 percent to $2.39.

Smalley said some of the heat came out of the tech stocks as investors took the opportunity to take profits.

Xero, whose share price has gained 480 percent in the past 12 months, declined 1.4 percent to $42.59. Security software company Wynyard slipped 7.6 percent to $2.93. NZAX-listed GeoOp, which today announced it was on track to hit sales targets of its task management app, tumbled 11 percent to $2.45.

“It could be the old absolute of investors, buy the rumour, sell the fact,” Smalley said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news